Citing the latest data from EPFR Global, Barclays said that investors pulled $2.2 billion of emerging market-dedicated equity funds and $1.28 billion bond funds in the week to July 10.

This compared with an inflow of $630 million into equity funds the previous week and a $610 million outflow from bond funds.

“Last week’s improvement turned out to be short lived, and the dovish comments from the Fed were either too late to pull back flows this week or simply insufficient to turnaround investors’ cautious attitudes towards emerging markets,” Barclays said, in a note to clients.

Nevertheless, this more cautious investor attitude could well turn around in the weeks to come following confirmation that Beijing isn’t so worried about China’s recent economic slowdown.

Speaking at a summit in Washington, Finance Minister Lou Jiwei said the administration doesn’t think there is “any big problem” with growth down at 7%, or even 6.5%.

New data due Monday are expected to show that growth in the second quarter has already slowed to 7.5% from 7.7% in the first.

So what does this mean for emerging markets?

As the world’s second largest economy, China is vital for the global recovery. If its growth is slowing then this could make major central banks, including the Fed, that much more reluctant to start reducing liquidity.

The Bank of Japan is already conducting unprecedented levels of asset purchases and the European Central Bank is expected to ease its monetary policy even further.

The news from China makes it likely that global liquidity will remain higher for longer, providing more reason for investors to return to the emerging markets from which they fled such a short while ago.